How Vodacom is fighting WhatsApp
WhatsApp is set to launch free voice calls in the coming months, which poses a significant threat to the mobile operators’ main revenue stream – voice. Vodacom is fighting through cheaper calls and bundles services.
With millions of WhatsApp and Facebook users in South Africa, the mobile operators took note when WhatsApp announced its voice calling plans.
MTN CEO Sifiso Dabengwa said free WhatsApp voice calls can be a game changer, but added that the success will depend on the quality and availability of the service.
Vodacom’s protection against WhatsApp voice calls
Speaking on CNBC, Vodacom CEO Shameel Joosub said that their pricing transformation provides protection against WhatsApp’s planned voice calls.
“If you drive your prices down low enough, there is no need for WhatsApp,” said Joosub.
“Today we have our new power bundles where you pay R4 for an hour of talktime, which translates into 7c a minute,” he said. “When you pay 7c per minute the WhatsApp option does not become that credible.”
Joosub said that you have to drive down pricing and make sure you have migrated customers to integrated bundles with voice, SMS and data to fight disruptive services like WhatsApp.
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